We represent small and large companies, focusing on commercial debtor and creditor issues, with an emphasis on Chapter 11 bankruptcy cases and out-of-court workouts and restructurings.
Ace Tank & Equipment
Bush Kornfeld represented the Unsecured Creditors Committee in the bankruptcy of Ace Tank & Equipment, a long standing company that manufactured, installed, and serviced underground tanks in the Pacific Northwest. Bush Kornfeld obtained Court approval to allow the Committee to pursue litigation against Ace Tank’s insiders. After significant litigation, the matter settled for a substantial amount which funded a distribution to creditors.
Alaska Power & Telephone Company
Alaska Power & Telephone Company, a private utility providing telephone and electrical power services in Alaska, entered into business transactions that resulted in difficulties. Our Chapter 11 representation of Alaska Power & Telephone Company included the restructuring of approximately $55 million in secured debt and in excess of $100 million in unsecured debt. After substantial negotiation, a consensual Plan of Reorganization was confirmed which allowed equity holders to retain their interests. AP&T continues to operate profitably today.
Associated Grocers was a cooperative that supplied groceries on a wholesale basis to numerous independent grocery stores in the Northwest. Associated Grocers experienced substantial financial difficulties resulting from loans to its members that it was unable to repay. Bush Kornfeld represented Associated Grocers and engaged in lengthy negotiations with approximately 20 lenders. Ultimately, Associated Grocers was able to obtain a new loan from one lender and use the loan proceeds to disburse funds to existing creditors. Nearly every creditor was willing to take an amount equal to 50% of the principal of its debt in full satisfaction of the obligations.
Bettencourt Dairies, LLC
Bettencourt Dairies, family owned, is one of the largest dairy farms in the United States, operating over more than 50,000 acres with more than 60,000 milk cows. Due to unprecedented feed prices and pressure on milk prices, Bettencourt sought to complete a long-term restructure of its secured operating and real estate debt. Bush Kornfeld worked with Bettencourt and its financial advisor, Piper Jaffray, to successfully negotiate a long term, out-of-court restructure of the secured debt. Bettencourt has been able to continue its operations uninterrupted.
Brown & Cole Stores LLC
Bush Kornfeld represented Brown & Cole in its Chapter 11 case. Brown & Cole initially operated 30 grocery stores in NW and Central Washington, has approximately 1,200 mostly union employees, and generates annual sales of almost $300 million. At the time of filing its Chapter 11 case, Brown & Cole’s secured debt exceeded $100 million. After restructuring its operations during the Chapter 11, Brown & Cole confirmed an operating Plan of Reorganization in December 2007, successfully restructuring its capital structure and pension obligations to facilitate its continued operation.
Future Claims Representative in the Spokane Archdiocese Ch. 11
Gayle Bush served as the Future Claims Representative and Bush Kornfeld served as counsel to the Representative in the Spokane Archdiocese Chapter 11, and participated in the substantial litigation and intense settlement process that ultimately led to a confirmed Plan of Reorganization and substantial distributions to and provisions for abuse victims.
Deep Ocean Expeditions, LLC
Bush Kornfeld represented the debtor in all aspects of its Chapter 11 case, including negotiating DIP financing to allow pre-confirmation payment of approximately $3 million in maritime liens and completion of the Debtor’s 183-foot vessel equipped with three deep diving submersibles, as well as confirming a plan of reorganization restructuring over $18 million of additional prepetition debt.
Larry’s Markets, Inc.
Larry’s Markets filed a Chapter 11 case culminating in a sale of the business and stores, after an auction process, to several buyers. Larry’s initially operated 6 grocery stores in the Seattle area, employed approximately 500 mostly union employees, and generated annual sales of approximately $100 million.
Bush Kornfeld represents James F. Rigby, Jr., Trustee of the Michael R. Mastro bankruptcy estate. The case involves over $600,000,000 in total debt and substantial litigation against various parties related to the Debtor.
Port Townsend Paper
Bush Kornfeld represented Port Townsend Paper Corporation, the owner of a large paper mill in Port Townsend, Washington, in its Chapter 11. Port Townsend Paper employed more than 300 individuals in the U.S. and together with its affiliates generated annual sales of $200 million prior to its Chapter 11 filing. Port Townsend’s secured debt, including bond debt, exceeded $100 million. Port Townsend Paper successfully confirmed a Plan of Reorganization converting its secured debt to equity and continues to own and operate its mill.
The Seattle Times
Bush Kornfeld represented The Seattle Times in successfully restructuring its long-term debt, as well as other operational and related issues. As a result of the restructure, The Seattle Times remains viable and the sole-surviving daily newspaper in Seattle.
Bush Kornfeld represented Skippers, previous owner and operator of more than 70 seafood restaurants in several states in its Chapter 11 case. Skippers completed an asset sale and completed distributions to creditors.
TC Global, Inc. (Tully's Coffee)
The firm represented TC Global, Inc. (Tully's Coffee) in its sale process through Chapter 11, working with the company to set up an auction process and completing the details which lead to a closed-sale transaction sufficient to pay creditors all, or nearly all of their debt. The process generated a greater return than estimated by financial professionals and proceeds are being distributed to unsecured creditors. In recognition, the firm received a 2014 Turnaround Management Association Small Transaction of the Year Award, as one of the most successful and impactful turnarounds, saving hundreds of jobs and making a significant economic impact, both locally and globally.